Consider a Market That Is in Equilibrium

question 144

Multiple Choice

Consider a market that is in equilibrium. If the market experiences both a decrease in demand and an increase in supply:

• A) the equilibrium price and quantity will rise.
• B) the equilibrium quantity will fall, but the change in the equilibrium price cannot be predicted.
• C) the equilibrium price will fall, but the change in the equilibrium quantity cannot be predicted.
• D) the equilibrium price and quantity will fall.

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Definitions:

Adjustment Request

A formal petition to alter or modify an existing condition or decision, often found in business, finance, or legal contexts.

Bad News Message

A type of communication that conveys negative or undesirable information to the recipient.

Financial Implications

The potential effects or outcomes of decisions or actions on the financial health or status of an individual or organization.

Minimize Negative Announcement

Strategies or methods used to convey bad news or unfavorable decisions in a way that aims to lessen disappointment or backlash.